Advantages And Disadvantages Of Outsourcing Business Functions: An Essay.

Disuss about the Advantages and Disadvantages of outsourcing business functions.

Outsourcing is a process that enables the organization to concentrate on primary main activities of business rather than wasting their time on ordinary activities. It supports to enhance the overall performance of the organization (Taylor, et al., 2015). For example, IBM outsources their business activities and ensures their employees to consider primary activities and enhance the existing financial situation of the firm. This report discusses the project scope and research methodology. The research design supports to gain understanding about certain techniques that facilitate to accomplish specified objectives of the research.   

The main aim of this research is to address the advantages and disadvantages of outsourcing business functions. The following objectives are used by research scholar to attain the research aim:  

• To explore the meaning and concept of outsourcing business functions.
• To discover advantages of outsourcing business functions.
• To examine disadvantages of outsourcing business functions.

• What is the meaning and concept of outsourcing business functions?
• What are the benefits or advantages of outsourcing business functions?
• What are cons of outsourcing business functions?

Null hypothesis: Ho: There is significant relationship outsourcing and organization performance

Alternative hypothesis: H1: There is no significant relationship between the outsourcing and organization performance

This research proposal aid to gain the understanding about the advantages and disadvantages of outsourcing business functions, Australia. Outsourcing of business function could directly influence existing financial performance of the firm. It will motivate research scholar to start their study on the current research issue. Moreover, it is also addressed that depth understanding towards of outsourcing business functions aids the organization to improve their business process and obtain a higher competitive benefit. This research study aids the researcher to improve their professional skills. It would be imperative if a researcherwants to make their career in human resource management department. It will also assist the organization to get higher competitive benefits. In the current business era, organization use outsources business functions to maintain abilities of the organization. This research support to make an effective decision in the context of outsourcing business functions.

In support of this, Mackey and Gass (2015) stated that a large number of multinational organization outsource their business activities in certain countries like Japan, India, Indonesia, and China. The organization could face many cultural issues due to lack of language barriers. The outsourcing organization selects local employee at cheaper costs but at the same time, it is also analyzed that the hired employee have lack of understanding about English. It will negatively impact on the business growth.

Lewis (2015) argued that modern companies use outsourcing methods to transfer their secondary business acts and focus on their primary acts to reduce their operating cost and operate their business successfully. It is also stated the globalization popularity enables the company to easily delegate their activity in developing countries because it declines their cost and offers them greater quality. According to Liu, et al. (2017), outsourcing is referred as the delegation of secondary business practices of a corporation to third party companies. Moreover, company focuses on primary practices to improve their performance.  It is also evaluated that an organisation transfers their practices to significantly operate their business and get reliable result. In support of this, Solli-Sæther and Gottschalk (2015) evaluated that a corporation should decrease their operating expenses by outsourcing the non-core business function to the third party. In such way, business expenditure could be associated with training, supervision and recruitment. Therefore, an organisation transfers their uses in developing nations to improve their expenses. It is also evaluated that China, India, Malaysia and Indonesia is the inexpensive nation whereas United States, Singapore and United kingdom is known for higher labour cost. In opposed to this, Kasemsap (2016) exemplified that outsourcing of business function could destruct the reputation of company and their domestic marketplace. A high amount of company could not support to the approach of outsourcing as these companies outsource the local jobs to foreign businesses.  Runar Edvardsson and Durst, (2014) evaluated that business activities could be segregated into distinct part like primary and secondary as it would support an organisation to attain the aim and objectives of investigation.  It is complex for an organisation to maintain higher degree of effectiveness at the workplace.

Research Questions/Hypothesis

The research methodology is effective to get instruction in terms of getting opinions and beliefs of research participants and measure gathered information. There are certain research design techniques that could be imperative in getting appropriate information about research concern.  

An investigator will follow the given phases to conduct this investigation as it would be effective to get the qualitative outcome:

Chart 1: Qualitative research process

(Sources: Silverman, 2016).

The research scholar will execute general research questions to obtain appropriate information by qualitative research techniques (Silverman, 2016). The researcher will choose suitable research matter by examining different sites of modern research concern. Subsequently, research scholar will create theoretical understanding about research matter to examine findings and attain research aim and objectives. The process is used to create data in the context of advantages and disadvantages of outsourcing business functions.

The researcher will imply inductive approach because this research is subjective. This approach facilitates research scholar to create conceptual framework about research matter. It will aid research scholar to improve accuracy and correctness of research result. On the other hand, deductive approach will not be implemented by an investigator as there is no need to develop the hypothesis (Braymanand Bell, 2015). In addition, the deductive approach will not be implemented because of qualitative nature of investigation.

Sampling is an effective technique to select research participants for conducting research and obtain a reliable result. The research scholar will use a non-probability sampling method to conduct their research issue because this research is qualitative (subjective) in nature. But, at the same time, it is also found that the non-probability sampling method is time-consuming and expensive as compared to the probability sampling method. Since, this method includes open-ended questionnaire in interview (Flick, 2015). For this research, the researcher will select 5 managers of Wesfarmers to conduct their research and obtain reliable research outcome.  Under this interview, an investigator will ask respondents with regards to benefits and cons of outsourcing the business function.

The researcher has used the primary data collection method to perform their research study and meet research aim and objectives. The primary data is first-hand information, which is gathered by an investigator to obtain the valid and reliable result. It is collected by using experiment, survey through questionnaire, interview and observation. By using this method, an investigator will competent to pool the data associated with research concern. It will also beneficial to improve the research quality. The information will be gathered by survey through a questionnaire (Humphries, 2017). Therefore, it can be said that the primary data collection method would be effective to get the accurate and factual information in the context of current research matter. Though this method, researcher attain the specified aim and objectives in limited cost and time.   

Project Scope

The researcher scholar has used two types of variables for conducting their research like dependent and independent variables. In this research, the independent variable is outsourcing while the dependent variable is organization performance.

The given procedure would be implemented by an invvestigaor to perform the quanitative investigation:

Chart 2: Quantitative research process

(Sources: Braymanand Bell, 2015).

With respect to the above chart, it is found that the investigator will create the hypothesis and conceptual information on initial phase. Through this, the researcher will be capable to obtain information with respect to the outsourcing business functions. This method also enables the researcher to collect information about current research matter (Braymanand Bell, 2015). Consequently, the researcher will be able to accomplish the research objectives and aim.

Research instrument is an analysing tool, which is structured to pool the facts and figures associated with research concern. The research scholar will practice secondary data collection method to operate research issue. The researcher will consider many methods like to obtain the information about research matter like government publications, academic journal, magazines, and books (Braymanand Bell, 2015).This technique is practiced by the researcher to help the primary data that will be imperative to enhance research outcome reliability.

Quantitative Data Analysis Process

The given process of quantitative data analysis will be used by an investigator:  

Chart 3: Quantitative data analysis process

(Sources: Zikmud, 2012).

From the above discussion, it can that researcher will address the data at the initial stage. Consequently, the researcher will choose appropriate data from the specified sample size. This method supports research scholar to enhance their understanding about frequency, mean, and data collection method to obtain accurate information in the context of current research concern (Zikmud, 2012). The researcher will use Ms-excel software to evaluate gathered information by tables, charts, and graphs. This technique helps research scholar to examine collected information and get a reliable outcome.   

The researcher will use probability sampling method to obtain information from specified research candidates and obtain the reliable result (Sherri, 2015).This technique will help to collect the views and opinion of the research candidates toward the specified research matter.  Moreover, the research candidates support to decline biases from the research study. The researcher will choose 50 employees for conducting their research study and obtain a reliable result. It would also help to attain the specified research aim and objectives in the least time and cost.

Literature Review

The validity demonstrates the accuracy of research result that could support to examine the collected data by quantitative data analysis method. For example, the researcher could use survey through a questionnaire to examine the pros and cons of outsourcing business functions. Moreover, it is also found that other strategy or approach is reliability that could be imperative for determining the consistency of research William, et al. 2015). The theoretical or qualitative data will be evaluated by literature review to examine the reliability and validity of the research.

The research limitation could directly negatively impact on the research outcome. There are many factors that could negatively impact on the performance of research like time, cost, and resources. Moreover, it is also found that the specified time period could mandate the researcher to complete their task in targeted time that could negatively impact on the research outcome (Sherri, 2015). Moreover, it is also found that inappropriate sample size could influence the result of research. Hence, it is also analyzed that lack of resources and cost could decline quality of research outcome.

Research activities	Research time
	1	2	3	4	5	6	7	8	9	10
Research issues selection
Development of  Research aim and objectives
Selection of data collection method
Design Research questionnaire
Selection of sampling method
Data analysis
Proof writing and Report writing,
Final submission

According to the above time plan, it could be depicted that conducting the survey and data gathering process will take long time for competing the aim and objectives of research as compared to other practices.

Conclusion

With respect to the above interpretation, it can be summarized that outsourcing businesses function could be imperative to enhance their growth of the firm. It is also found that there is a positive relationship between outsourcing and business performance because outsourcing could enable the firm to hire outside company or individual for handling their business activities. It will also be effective for declining their cost and obtain higher competitive benefits.  In addition, it can also be concluded that the research methodology is supportive to choose appropriate technique for conducting research and attain the research aim and objectives. The research methodology considers many methods like research strategy, research approach, research philosophy, data collection method, data analysis method, and sampling method.  It will help to obtain a reliable outcome in the context of specified research outcome.

References

Brayman, A and Bell, E. (2015) Business research methods, UK: Oxford University Press.

Flick, U. (2015) Introducing research methodology: A beginner's guide to doing a research project. UK: Sage.

Humphries, B. (2017) Re-thinking social research: anti-discriminatory approaches in research methodology. USA: Taylor and Francis.

Kasemsap, K. (2016) The role of strategic outsourcing in global business, Alor-HernándezG. Sánchez-RamírezC. García-Alcaraz.(Eds.), Handbook of research on managerial strategies for achieving optimal performance in industrial processes, pp. 325-357.

Lewis, S. (2015) Qualitative inquiry and research design: Choosing among five approaches. Health promotion practice, 16(4), pp.473-475.

Liu, S., Wang, L., and Huang, W. W. (2017) Effects of the process and outcome controls on business process outsourcing performance: Moderating roles of vendor and client capability risks, European Journal of Operational Research, 260(3), pp. 1115-1128.

Mackey, A., and Gass, S. M. (2015) Second language research: Methodology and design. UK: Routledge.

Runar Edvardsson, I., and Durst, S. (2014) Outsourcing of knowledge processes: a literature review. Journal of Knowledge Management, 18(4), pp. 795-811.

Sherri L. Jackson (2015), Research methods and statistics; Critical Thinking Approach, USA: Cengage.

Silverman, D. (Ed.). (2016) Qualitative research. USA:Sage.

Solli-Sæther, H., and Gottschalk, P. (2015) Stages-of-growth in outsourcing, offshoring and backsourcing: Back to the future?, Journal of Computer Information Systems, 55(2), pp. 88-94.

Taylor, S. J., Bogdan, R., and DeVault, M. (2015) Introduction to qualitative research methods: A guidebook and resource. USA: John Wiley and Sons.

William, T., James, P. and Arora, K. (2015), Research methods: The essential knowledge Base, USA: Cengage.

Zikmud, W. G. (2012) Business research methods, USA: Cengage.